Embedded Finance: Making Online Transactions Even Simpler
The financial advice industry is in the midst of a rapid digital transformation. The change not only promises more security and protection against fraud but also automated processes that make everyday work easier. It also helps retain customers. Financial advisors who miss out on this trend will be left behind – and even lose customers in the worst case. New technologies such as augmented reality (AR) offer financial advisors a wide range of possible applications that improve the customer experience and also support advisors in their work. In this blog, you’ll find out which application possibilities this technology offers and where it can be used.
AR in financial advisory services
Augmented reality has made enormous progress in recent years and is increasingly being used in financial advice. AR allows advisors to display information in real-time while interacting with the customer. This can typically involve a financial advisor showing portfolio data directly to the customer or presenting financial models in a virtual environment. Financial advisors can use AR glasses or AR-enabled tablets to display the information in real-time. This lets the advisor show the customer different scenarios and directly demonstrate possible effects on investment decisions.
Another advantage of AR: customers using AR apps can communicate directly with an advisor in real time – making communication a lot easier. For instance, if a decision is pending on which insurance policy to take out, risks can be revealed directly.
Yet it isn’t just the insurance industry that benefits from AR. Bank branches can typically use AR to support customers locally with investment advice. Customers can use AR glasses to contact a financial advisor in the branch who will assist them with transactions, deposits, and withdrawals.
Digital signatures can also be created more quickly and easily with AR. These can then be used for authentication to ensure that it’s indeed the authorised person who wants to carry out a transaction.
The use of AR in financial advice thus offers a variety of opportunities to improve communication, the customer experience, and the effectiveness of advice. It’s important that financial institutions and advisors strategically plan the implementation of AR technologies – ensuring that data protection and security are guaranteed at all times.
Advantages of authentication with AR
The impact of augmented reality (AR) on the customer experience isn’t set in stone; it depends a lot on who you ask. Every customer has their own expectations, preferences, and needs. However, for the majority, AR may be perceived as absolutely enriching and innovative. We can highlight the following five advantages today:
- The technology can help authenticate customers in the banking and insurance sectors.
- AR can thus support biometric authentication. AR cameras offer excellent possibilities for facial recognition or iris and retina scanning.
- AR can also facilitate the implementation of two-factor authentication or multi-factor authentication (2FA and MFA). For example, customers with an AR-enabled device could scan QR codes that are used in combination with a password for authentication. The combination of something the customer knows (password) and something the customer has (AR-enabled device) greatly increases security.
- Location-based authentication also becomes more secure through the use of AR. By integrating AR and GPS, banks and insurance companies can ensure that the customer is actually in a specific physical location to access certain services. This is really useful for transactions that require the customer’s physical presence.
- AR can also be used to enable encrypted communication between customers and financial institutions. For example, customers could use AR to decrypt encrypted messages and communicate securely with bank and insurance agents.
Defence against attempted fraud with AR: a scenario
A bank customer receives an e-mail from his bank informing him of suspicious access to his account and asking him to confirm his identity. Instead of clicking on the link in the e-mail, AR technology can be used for secure authentication.
Biometric identification – such as a face scan – can now be carried out via the official banking app and an AR-enabled smartphone. The app compares the face with the biometric data stored when the account was opened.
After successful facial recognition and confirmation of identity, the customer receives a message in real-time via the app. This informs him that suspicious access to his account has indeed taken place and that the e-mail originates from the bank.
With the certainty that the e-mail is legitimate, the customer can now take further security measures directly in the app – like changing the access data for instance.
This allows the customer to confirm their identity – securely yet quickly without having to respond to fraudulent e-mails. This underlines AR’s role in fraud prevention and online banking security.
Integrating augmented reality opens up a wide spectrum of possibilities to improve the customer experience and make authentication more secure. Security and fraud prevention will be key issues in this changing environment. Financial institutions and advisors should strategically harness the power of AR to better serve customers and lead the industry into a promising future.
Conclusion
The financial advice industry is experiencing a digital revolution in which augmented reality (AR) plays a key role. This change promises increased security, automation of processes and increased efficiency. AR also improves the client experience and strengthens client loyalty. Financial advisors who ignore this trend risk losing clients.
AR enables real-time display of information in financial advice, improves communication with clients and provides solutions for secure authentication. This technology opens up multiple opportunities to optimise the customer experience and strengthen security in the industry. The strategic use of AR is the key to leading financial advice into a promising future.
